Government safeguards gas supply

THE Australian Domestic Gas Security Mechanism is now in effect.

Minister for Resources and Northern Australia Senator Matt Canavan said the mechanism would allow the government to intervene, if necessary, to ensure adequate gas was available to Australian homes and businesses.

The minister will use assessments including those from the Australian Energy Market Operator, the ACCC and industry to determine later this year whether 2018 will be a shortfall year and whether export licences will be necessary from January 1.

“AEMO’s revised gas forecast shows that domestic gas supply and demand remain finely balanced,” Senator Canavan said.

“We need to be able to act should critical gas shortages arise that might impact on manufacturers and households.

“These forecasts are welcome but while the potential for gas shortfalls remains, we’re not going to roll the dice on Australian jobs.

“The LNG sector is important to our economy through its substantial contributions to GDP, employment and business opportunities, including in many regional and rural areas.

“But subjecting Australians to gas shortages while Australia becomes the world’s largest LNG exporter is simply unacceptable.

“I have been pleased by the constructive approach from LNG producers in discussions since March as we have developed new guidelines and regulations to give effect to the new mechanism.”

Senator Canavan said the government’s longer term goal was to increase the domestic gas supply and boost competition, and improve transparency and efficiency of the gas market supply chain.